A Conversation with PepsiCo Chairman and CEO Indra Nooyi

As part of our ongoing series of conversations with leaders in sustainability, we asked BSR Conference 2014 plenary speaker and PepsiCo Chairman and CEO Indra Nooyi how her company incorporates transformation into its work.

What has been PepsiCo’s most significant transformation over the past year?
At PepsiCo, we look at transformation not as an achievement, or as an initiative that can be measured within the constraints of a given timeframe. Rather, we see it as a state of being. We are constantly pushing ourselves to transform, because in a world defined by increased volatility, complexity, and speed, it is the only way to succeed. Accepting the status quo is simply not an option. And in fact, if we approach transformation the right way, it is a process that never ends. 

Has transformation always been part of the culture at PepsiCo?
Transformation is now ingrained in our DNA at PepsiCo, but back in 2006, we needed to embed it formally into our culture. At that time, PepsiCo was an iconic company with culturally significant brands, and a history of delivering solid financial returns. But we could see then that times were changing—and we needed to change along with it. Consumers were moving toward healthier lifestyles and more nutritious products. The information age was educating and empowering consumers in profound new ways. The demographic balance of power—economically and culturally—was shifting. Natural resource constraints were no longer something to be dealt with in the future, but a significant concern in the present.

What this all meant was that how we made our money as a business needed to change. We needed to move to a model that had transformation at its very core, in line with the changes of the world.

So in 2006, I instituted a companywide vision for PepsiCo called Performance with Purpose. The idea was simple: We would continue to deliver strong financial results, with sustainable practices powering and accelerating our long-term growth. In short, purpose would fuel our performance.